Leisure & Resorts World sets P400-M capex for expansion

Casino and hotel firm Leisure & Resorts World Corp. (LRWC) said it is expanding its bingo outlets this year to cater to growing demand from the entertainment and gaming industry amid robust economic growth in the country.

LRWC President Reynaldo Bantug told reporters on Friday the company is building a total of 20 Bingo Bonanza outlets to be completed by the end of the year, adding to the LRWC’s existing 74 bingo outlets as of end-2013.

Vice President for Business Development Christina Bautista said the LRWC will spend P300 million to P400 million to build the bingo outlets.

Each Bingo Bonanza unit costs P15 million to P20 million to construct.

Bantug said funding for the expansion will mostly come from internally generated funds, as well as loans, revenues from recently acquired Digiwave Solutions and Total Gamezone and net proceeds from the sale of shares last year.

Revenue-wise, the expansion will boost the firm’s operations next year, Bautista said.

“With growth in the economy, we can feel the [increase in]patronage of the entertainment industry. We are optimistic,” she said.

The company hopes to sustain its revenues this year, on top of the 14.8 percent increase to P5.08 billion generated last year after it posted P4.49 billion in 2012.

The LRWC’s first-quarter net income this year more than doubled to P167.4 million, from P78 million in the first three months of 2013, while revenue surged 22.6 percent to P1.431 billion from P1.167 billion.